ZERA: Zimbabwe Energy Compact in Action Guides Sector Transformation

• Zimbabwe adopted the Zimbabwe Energy Compact in 2025 to transform its energy sector.
• The compact aims to increase renewable energy's share (excluding large hydro) to 29% by 2030 and achieve universal energy access by 2030.
• The Zimbabwe Energy Regulatory Authority (ZERA) is responsible for implementing the compact, including new regulatory frameworks and competitive bidding guidelines.
• ZERA has published guidelines for 500 MW of new solar and hydro projects and established a dedicated Compact Implementation Unit.
• The compact is expected to attract over $9 billion in energy sector investment by 2030, offering incentives like tax holidays for renewable projects.

The Zimbabwe Energy Regulatory Authority (ZERA) has been entrusted with the critical mandate of overseeing the comprehensive implementation of the Zimbabwe Energy Compact.

Zimbabwe has formally embarked on an ambitious national energy transformation agenda with the adoption of the Zimbabwe Energy Compact in 2025. This significant policy framework, which followed high-level commitments made at a United Nations-backed energy forum, establishes a comprehensive roadmap for the nation's energy sector development. The compact's overarching goals are centered on enhancing energy security, promoting sustainable development, and expanding access to modern energy services across the country.

The compact represents a pivotal moment for Zimbabwe's energy policy updates, signaling a clear shift towards a more diversified and sustainable energy mix. It is designed to guide both public and private sector investments, ensuring alignment with national development priorities and international climate change commitments. The implementation of this compact is anticipated to reshape the regulatory landscape and create new frameworks for energy projects, particularly in the renewable energy space.

The Zimbabwe Energy Regulatory Authority (ZERA) has been entrusted with the critical mandate of overseeing the comprehensive implementation of the Zimbabwe Energy Compact. This includes the development and enforcement of new regulatory frameworks specifically designed to accommodate independent power producers (IPPs) and facilitate the seamless integration of renewable energy sources into the national grid. ZERA's proactive engagement underscores the government's commitment to creating an enabling environment for energy sector growth.

In a tangible demonstration of its commitment, ZERA recently published detailed guidelines for competitive bidding processes targeting new solar and hydro power projects. These guidelines are expected to unlock approximately 500 megawatts of new generation capacity, fostering greater competition and efficiency in the sector. To streamline project approvals and enhance monitoring capabilities, a dedicated Compact Implementation Unit has been established within ZERA, signaling a concerted effort to accelerate the compact's objectives and ensure robust oversight of ZERA energy sector developments.

The Zimbabwe Energy Compact sets forth ambitious Zimbabwe renewable energy targets, aiming to elevate the share of renewables, excluding large hydro, in the national energy mix to 29% by 2030, a substantial increase from the estimated 12% recorded in 2023. Beyond generation, the compact also prioritizes universal energy access, with a long-term goal of achieving this by 2030, placing particular emphasis on deploying off-grid solutions to serve remote rural communities. These targets align closely with Zimbabwe's Nationally Determined Contributions (NDCs) under the Paris Agreement, which include a commitment to a 40% reduction in energy-related emissions by 2030.

This strategic shift is projected to unlock over $9 billion in energy sector investment by 2030. The compact actively encourages private sector participation, outlining various incentives such as tax holidays specifically for renewable energy projects. These measures are designed to attract both domestic and international capital, fostering a dynamic environment for growth and innovation within the energy sector.

Lawyers advising energy sector clients in Zimbabwe should review this ZERA publication for updates on the implementation of the Zimbabwe Energy Compact, which may introduce new regulatory requirements, compliance obligations, or investment frameworks affecting energy projects and operations.

Source: Original reporting via government publication